The FCA is seeking to ban and fine an adviser for lacking integrity.
Paul Reynolds, formerly known as Paul Brian Reynolds, is appealing the decision to the Upper Tribunal.
The decision notice reveals the FCA has decided to fine Reynolds £290,344 and ban him from performing any regulated activities because he is not fit and proper and lacks integrity.
Reynolds was an approved person at Aspire Personal Finance Limited, previously known as Positive Financial Strategies Limited, between 2005 and 2010.
He stands accused of recklessly recommending high risk investment products to eight retail clients, when he knew that he could not justify their suitability.
The regulator says he was knowingly involved in the falsification of the signatures of two clients on sophisticated investor certificates to suggest that the investment could be legitimately promoted;
It says he also deliberately made investments on behalf of two clients without their knowledge or authorisation.
The FCA says Reynolds deliberately produced inflated valuations of clients’ investments in an attempt to mislead them and conceal the poor performance of the investments he had recommended.
It also says he deliberately submitted loan facility and investment applications, on behalf of a number of his clients, which contained inflated incomes and other false and misleading information.
Finally, he is accused of deliberately attempted to mislead the FCA by retrospectively creating various documents and misrepresenting that they were contemporaneous.
The decision notice says Reynolds’ actions on these eight clients were particularly serious as most of them were on low incomes.
They had little or no investment experience and the complex and high risk products he recommended were unlikely to be suitable for their needs.
The FCA says in some instances they were unaware that they had invested in unregulated investments or of the associated risks.
FCA director of enforcement Tracey McDermott says: “People go to advisers because they want expert help to make the most of their money. They should be able to trust advisers to act in the customer’s best interest and recommend products which will suit their needs.
“It is critical that firms and individuals put their customers’ interests first.”
Reynolds unsuccessfully sought to stop the decision notice being published. The Tribunal will hear his case on 8 and 9 December 2014.